Difference between master file and transaction file?

File: A file is a collection of rated data that is treated as a single unit on a peripheral device. for example text document in Word processing.

File is of two types:

Master file: contains records of permanent data types.master files are created at the time when you install yopur business. if you wish to convert your company into computerised one you need to create master file which can be created by using your manual file folder and keying data onto storage devices for example the name of coustomer ,dob,gender etc these are permanent data types.

Transaction file: contains data which is used to update the records of master file for example address of the costumer etc.